Energy Efficiency Certificate (EEC) and its Role in the Fulfilment of Energy Savings Obligations
An EEC, or Energy Efficiency Certificate, is an electronic document that formally acknowledges an annual reduction in final energy consumption resulting from an energy efficiency measure. This certificate is used within the framework of the National Energy Efficiency Obligations Scheme (SNOEE), established under Law 18/2014.
STAY UPDATED
We also present this collaboration in video format, should you prefer this medium:
Obligated Parties and the SNOEE
The SNOEE establishes an annual national energy savings target applicable to electricity and gas retailers, wholesale petroleum product operators, and wholesale liquefied petroleum gas operators, hereinafter referred to as “obligated parties.”
Compliance with Obligations through EECs
Initially, the only means of fulfilling these obligations was by making financial contributions to the National Energy Efficiency Fund (FNEE). However, Law 18/2014 introduced an accreditation system for energy savings through EECs, as an alternative mechanism to fulfil part or all of the energy savings obligations.
Operation of the EEC System
The EEC System enables obligated parties to justify their compliance by undertaking or promoting energy efficiency measures, rather than solely contributing to the FNEE.
Two methods are available to obtain EECs:
- Standardised Measures: Based on a catalogue of predefined actions with simplified methodologies for calculating energy savings.
- Singular Measures: Project-specific actions not included in the catalogue, requiring a more detailed verification of energy savings.
Settlement of EECs for Compliance
EECs generated through these measures may be “settled,” meaning they are used to justify part or the totality of an obligated party’s energy savings requirement. It is important to note that one EEC corresponds to a value of 1 kWh of energy savings.
Benefits of the EEC System
The implementation of the EEC System provides several advantages:
- Flexibility: Obligated parties may choose between contributing to the FNEE or carrying out energy efficiency measures to comply with their obligations.
- Economic Efficiency: Encourages the pursuit of the most cost-effective energy savings options.
- Private Sector Participation: Incentivises investment in energy efficiency by private entities, including those not designated as obligated parties.
- Consumer Benefits: Promotes the reduction of energy consumption and, consequently, energy bills for end consumers.
Role of the Delegated Party
Within the EEC System, there is the figure of the “delegated party,” a legal entity authorised to assume part of the savings obligations of obligated parties by generating and settling EECs. Delegated parties may not use the FNEE to fulfil their commitments; they may only do so through the settlement of EECs. Their capacity to assume energy savings commitments is limited by the coverage of their civil liability insurance.
Conclusion
In summary, the EEC is a key instrument under the SNOEE to promote energy efficiency in Spain. It enables companies to comply with their savings obligations in a flexible and cost-efficient manner, while incentivising investment in projects that benefit both the environment and the national economy.
Is your energy project up to date with the regulatory and emissions framework that applies to it? At ILP we support developers and investors on the legal side of their operations. Tell us about your case.
Contact
Don’t be left in doubt, get in touch. We’ll be happy to help and offer you solutions.
If you liked this article, you may also find it interesting to read the following one:
Energy Saving Certificates (CAES): An Opportunity for Companies and Individuals
